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1 results

  • 5 - Philanthropy for Capacity Building

  • from Part II - Capacity Building
  • Edited by Clare Woodcraft, University of Cambridge, Nitya Mohan Khemka, PATH
  • Foreword by Elizabeth Yee, The Rockefeller Foundation, Deepali Khanna, The Rockefeller Foundation
  • Book:
    Catalytic Capital
    Published online:
    27 November 2025
    Print publication:
    11 December 2025, pp 115-133
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  • Summary

    Small and medium-sized enterprises (SMEs) are the economic backbone of Latin America and the Caribbean (LAC), generating over 60% of employment and driving local supply chains. Yet, systemic barriers – including limited access to financing, digital exclusion, and regulatory hurdles – prevent them from reaching their full potential. These challenges disproportionately impact informal businesses, restricting their growth and long-term sustainability.

    This chapter explores how philanthropy can be a catalyst for change, addressing these barriers and unlocking SME potential. Through the Tienda Cerca initiative by AB InBev, it highlights how blended finance, digital tools, and capacity-building programs can empower small businesses. By digitizing informal enterprises, expanding access to credit, and fostering entrepreneurial resilience, these interventions not only drive financial inclusion but also promote sustainable economic development.